Denmark-based dairy company Arla Foods is planning to close fresh milk processing production facility at Hatfield Peverel dairy in Essex in the UK, by the end of July this year, which is likely to result in 200-plus redundancies.
Hatfield Peverel has the capacity to process 356,000 litres of milk per day.
The facility processes fresh milk for Arla Cravendale and Arla Big Milk apart from own-label fresh and organic milk for major retailers.
The closure decision came after a detailed review of outbound logistics and operations at Hatfield Peverel.
Arla is also planning to implement an improved model which would facilitate in outsourcing the operation to Bidvest Logistics, which is a distribution and supply chain services company.
If accepted, the proposal is likely to impact around 32 employees who would be transferred to Bidvest Logistics, in a phased manner. The potential number of people likely to be impacted by the changes at the Hatfield Peverel dairy will be around 230.
The company's Aylesbury site will now take charge of most of Hatfield Peverel's processing and smaller volumes of milk. The site will deliver the volumes of milk to other Arla fresh milk dairies dependent on customer requirements.
The Aylesbury site processes a billion litres a year, after a significant boost in its operations since its opening in 2014.
The latest move follows Arla's investment of more than £150m in its modern fresh milk facility at Aylesbury. The facility is considered as one of the largest dairy operation, built to support the company's long-term strategy to enhance volume of milk processing in the UK.
Arla Foods UK supply chain senior vice president Dan Kolding said:"As a farmer-owned dairy company, our mission is to return the highest value for our farmers' milk, creating opportunities for growth. The development of Aylesbury is helping us to deliver this vision in the UK, as the dairy approaches capacity.
"We are entering into full consultation with all colleagues affected by both proposals, and their trade union representatives. We are committed to supporting our colleagues at this difficult time and will do everything we can to support colleagues in their search for suitable alternative employment either within Arla or elsewhere."
